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Xometry (XMTR) FY Conference Transcript
XMTRXometry(XMTR)2025-05-14 20:00

Summary of Xometry Conference Call Company Overview - Company: Xometry - Industry: Custom Manufacturing - Market Size: Estimated at over 2trillion,heavilyfragmentedwithhundredsofthousandsofsmalltomedium−sizedmanufacturers[5][6]CoreBusinessModel−∗∗Marketplace∗∗:AI−poweredplatformforcustommanufacturing,providinginstantpricingandoptimalmanufacturermatching[6][9]−∗∗GlobalPresence∗∗:Operates18localizedmarketplacesacrosstheU.S.,Europe,andAsia[6][12]KeyMarketInsights−∗∗AddressableMarket∗∗:Custommanufacturingiscomplex,makingitdifficultforcustomerstofindsuitablemanufacturers[8][9]−∗∗BuyerProfiles∗∗:Includesengineersandprocurementprofessionals,withashifttowardslargerprojectsandassemblies[13][14]−∗∗SupplierProfiles∗∗:SuppliersareattractedtoXometryduetoitsabilitytofillcapacitywithhigh−valuejobs[15][17]GrowthMetrics−∗∗BuyerandSupplierBase∗∗:Over71,000buyersandnearly4,500suppliers[13]−∗∗CohortGrowth∗∗:Over1,500accountsspendingmorethan2 trillion, heavily fragmented with hundreds of thousands of small to medium-sized manufacturers [5][6] Core Business Model - **Marketplace**: AI-powered platform for custom manufacturing, providing instant pricing and optimal manufacturer matching [6][9] - **Global Presence**: Operates 18 localized marketplaces across the U.S., Europe, and Asia [6][12] Key Market Insights - **Addressable Market**: Custom manufacturing is complex, making it difficult for customers to find suitable manufacturers [8][9] - **Buyer Profiles**: Includes engineers and procurement professionals, with a shift towards larger projects and assemblies [13][14] - **Supplier Profiles**: Suppliers are attracted to Xometry due to its ability to fill capacity with high-value jobs [15][17] Growth Metrics - **Buyer and Supplier Base**: Over 71,000 buyers and nearly 4,500 suppliers [13] - **Cohort Growth**: Over 1,500 accounts spending more than 50,000 annually, with 100 accounts exceeding $500,000 [20][21] - Marketplace Growth: 27% year-over-year growth in Q1, with a focus on increasing production work [22][24] Strategic Initiatives - TeamSpace: Software for organizing and buying entire products or assemblies, gaining traction with over 7,000 teams created [21][35] - WorkCenter: A manufacturing execution system for suppliers, enhancing visibility and operational efficiency [36][39] - Instant Quoting: Expansion of instant quoting capabilities expected to drive order volume and margin growth [40][42] Market Dynamics - Tariffs and Supply Chain: Increased awareness of supply chain resilience due to tariffs, with Xometry positioned to help companies diversify sourcing [24][27] - Macro Environment: Despite macroeconomic challenges, Xometry has maintained positive momentum and market share growth [31][32] International Expansion - Current Footprint: International business accounts for about 15% of revenue, with plans to grow this to over 30% [50] - Geographic Focus: Strong presence in Europe and expanding into Asia, particularly China [52][53] Financial Performance - Revenue Outlook: Raised revenue outlook based on consistent growth and strong execution [56][58] - Marketplace Gross Margin: Aiming for 35-40% long-term gross margin, with recent investments temporarily impacting margins [63][64] - EBITDA: Positive adjusted EBITDA achieved, with a target of 20-30% long-term margins [66][67] Competitive Landscape - Main Competitor: Traditional manufacturing methods and local suppliers [48][49] - Differentiation: Xometry's digital platform offers a more efficient and reliable solution for custom manufacturing [49][75] Future Outlook - Transformative Initiatives: Continued execution on AI-driven quoting, global marketplace expansion, and enhanced tools for buyers and suppliers [76][77]